Kakao, Macaron, Tada, and Even Uber? A Big Market Opens for Franchise Taxis (Comprehensive)

[Asia Economy Reporter Buaeri] It has been confirmed that the global company Uber is considering entering the franchise taxi (gamaeng taxi) business in the Korean market. Currently, the domestic franchise taxi market is dominated by Kakao Mobility's 'KakaoT Blue' and KST Mobility's 'Macaron Taxi.' Each company has secured 9,800 and 10,000 franchise taxis respectively. With Tada reportedly joining the competition and Uber also showing interest, the franchise taxi market is stirring.

◆ Uber Franchise Taxi Related "Under Multifaceted Review" = Tom White, Head of Uber Korea and Japan, indicated the possibility of market entry in an interview with Asia Economy on the 31st when asked about plans to enter the franchise taxi business. He said, "We are reviewing it from multiple angles to provide valuable services." Uber, headquartered in San Francisco, USA, is the world's largest ride-sharing service company, operating in over 900 cities across 70 countries worldwide, including the US and Europe.

Uber's representative model, 'UberX,' is a ride-sharing service that connects private vehicle owners with passengers and charges a commission. However, due to legal controversies, this service is not available in Korea. White explained, "We see it as practically difficult to introduce ride-sharing services in Korea." Instead, Uber currently offers some services such as the premium taxi 'Uber Black' and the general taxi brokerage service 'Uber Taxi.' He added, "Respecting Korea's regulatory environment is the starting point for providing smart mobility services," and stated that Uber will conduct its business in compliance with domestic laws.

Regarding Uber's interest in franchise taxis, White explained, "The amendment to the Passenger Transport Service Act has laid the groundwork for providing safe mobility services." The amendment to the Passenger Transport Act, passed in March, classifies mobility platform businesses into three types: transportation, franchise, and brokerage. 'Transportation' refers to rental car-based ride-sharing services, 'franchise' involves contracting with taxi companies to provide standardized quality services, and 'brokerage' connects taxis through applications (apps).

Franchise taxis, like KakaoT Blue and Macaron Taxi, have shown visible results since the amendment to the Passenger Transport Act. White confirmed, "We have seen the development of quality taxi services with the recent launch of various taxi services," and emphasized, "We will continue efforts to promote mobility innovation in close cooperation with the taxi industry."

◆ High Growth Potential in Fares and Services = With Uber showing interest, the franchise taxi market is turning into a battleground involving Tada, which has been suggested as a potential market entrant, and KakaoT Blue and Macaron Taxi, which have already entered the market. Mobility companies are eyeing the franchise taxi market because of business stability. Uber, Kakao Mobility, and others have had significant conflicts with the taxi industry while providing ride-sharing services. However, franchise taxis operate based on 'taxis,' so they are free from opposition by the taxi industry.

Franchise taxis also have high potential for business expansion through additional services and big data utilization. Unlike general taxis, which are regulated in terms of fares, services, and even taxi appearance, franchise taxis can legally create various revenue models. KST Mobility has already launched new products such as hospital accompaniment and pet taxis for its franchise taxi 'Macaron Taxi' with additional charges.

Moreover, big data accumulated from franchise taxi operations can be used to expand service areas such as food delivery and errands. Experts predict that mobility companies will create added value based on big data accumulated from franchise taxis in the future. Professor Choi Kyung-jin of Gachon University said, "Taxis are the basic means of transportation excluding public transport like buses. Mobility data can build a 'logistics economy' foundation," and added, "Just as Uber started with ride-sharing and expanded to food delivery services, mobility companies will also diversify and differentiate services using big data."

This content was produced with the assistance of AI translation services.